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Monday, October 24, 2016

See: Budget 2017 a letdown for Sarawak, Sabah

October 22, 2016, SaturdayJonathan Chia, reporters@theborneopost.com

See Chee How

KUCHING: The Budget 2017 tabled by Prime Minister Datuk Seri Najib
Tun Razak at Parliament has dashed any hope that Sarawak and Sabah would
get generous grants as an under-developed region to catch up with basic
amenities and infrastructural development in the Peninsular Malaysia,
PKR Sarawak vice chairman See Chee How has said.

He said it was clear through the budget that the federal government had failed Sarawakians and Sabahans.

He pointed out that the prime minister and the federal government made no commitment to the specific requests made by Sarawak.

He said the increased equity in the oil and gas industry demanded by
the state through higher petroleum royalty was not addressed.

“Similarly, the state has sought a review of the special grants for
Sarawak pursuant to the Tenth Schedule, promised to be reviewed every
five years after the formation of Malaysia but was only reviewed once in
1969! The Budget 2017 has made no mention of this financial review.”

See added Budget 2107 also ignored the state government’s request for
the return of stamp duties for land transfer, mortgage and other
dealings, which was under the state’s jurisdiction and rightfully
revenue for the state, but was wrongfully taken away from the state by
the federal government.

“Without the financial resources, it will be difficult for the state
to carry out the rural and social economic transformation programmes
that are earmarked by the state administration, to narrow the vast
development disparity between Sarawak and Peninsular Malaysia, and
between the urban and rural segments of Sarawak.”

As an immediate remedial action, See said the state would have to
fork out a considerable sum from its reserve funds to carry out the
needed rural and social economic transformation programmes.

“It is, therefore, foreseeable that the state will have to make a
critical decision to mobilise a considerable sum from our state reserves
to take care of the essential needs of the state and our people in
presenting our state budget this late November.”

For the long term, and to sustain balanced growth and development for
the East and West Malaysia, See opined that it was imperative for the
two East Malaysian state governments and the federal governments to
seriously tackle the development disparity due to neglect by giving the
states greater autonomy in resource management, bigger administrative
and legislative power, as well as budgetary independence.

He said the budget was a wakeup call for political leaders in Sarawak
and Sabah that they must work together as an alliance to demand for
equitable development and economic justice.

“With the electoral promises made by the prime minister, particularly
on state rights and interests, that had resulted in the huge electoral
success in the recent Sarawak state election, the Budget 2017 is in
essence a litmus test, indicative of the federal government’s sincerity
and commitments to fulfill their pledges of granting the East Malaysian
states greater autonomy with the process of devolution of powers to
Sarawak and Sabah getting underway.

“More than a year has transpired since the government announced the
setup of the joint committees of federal and state legislators and
administrators to work on the areas and process of devolving powers from
the federal to the two East Malaysian states.

“It is clear to all that those promises and purported efforts were
mere shadow plays aiming at the just-concluded Sarawak state election
and to placate the intense regional sentiments amongst the Sarawakians
and Sabahans.

“We have to ask: ‘Where is there an item that shows an area and its
degree of devolved federal power, autonomy and budgetary independence of
Sarawak and Sabah?’”

See pointed out that this was the single most significant concern of
Sarawakians but the prime minister and the federal government had made
no commitment in Budget 2017.

“It smacks of the sheer arrogance of the Umno-led BN (Barisan
Nasional) in treating Sarawak and Sabah as their electoral fixed deposit
states.”

See also noted that only 18.26 per cent of the budget was for
development expenditure while 81.74 per cent was for operating
expenditure.

He added that the nominal reduction in taxes and increase in
1Malaysia People’s Aid (BR1M) were ‘sugar coating for a bitter budget’
and would not ease the burden of the people, especially those in the
lower income groups as those reliefs would be easily gobbled up by Goods
and Services Tax (GST), the removal of subsidies for essential goods
and the increase in expenditure for basic amenities and services such as
healthcare and education.

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